© 2012 ROHR International, Inc. All International rights reserved.

Breathtaking. That's the only term we can possibly use to describe the US Supreme Court (SCOTUS) upholding  almost all of the Affordable Healthcare Act, known in the vernacular as ‘Obamacare’. That was based on a taxation issue instead of addressing whether it is legal under the US Commerce Clause. This is a personal budget and US federal budget Black Hole in motion (more on that below.) So the equities have decided there is no basis for a Rip (short term rally), just ample reason for a further Dip considering there is likely to be more bad news from Europe as well.

And if you think the Republican Right was motivated on this fall's election prior to this moment, just wait until you see what happens next. And the verdict from the equity market is that this is a bad idea…

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© 2012 ROHR International, Inc. All International rights reserved.

Our only question is whether we actually get the ‘Rip’ (i.e. sharp short term rally), if it was built in on an anticipatory rally on Wednesday? Of course, there might still be a constructive knee-jerk reaction to the US Supreme Court (SCOTUS) likely move to strike down the ‘individual mandate’ (forced purchase) portion of the Affordable Healthcare Act. However, there is a question of whether it is so broadly anticipated as to become a non-event?

That is all reinforced by the degree to which the European Summit does not seem to be yielding any constructive results. In fact, while the acrimony might be very cordial at this point, it seems to be escalating nonetheless. And that would be based upon actions by some of the participants that appear nothing less than counterproductive…

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© 2012 ROHR International, Inc. All International rights reserved.

Our Weekly Report & Event Calendar is available through the link in the right hand column. Focused comments on the implications for this week are now also available as well below it in the calendar section as the Summary Perspective on Key Influences. We hope you find that useful as well.

It contains the opening summary of why European and central bank influences were almost assuredly going to weigh on the equities in the second half of last week. It also has the Concise Market View at the end, which points out the key levels for the equities that are probably also the overall driver for market psychologies in the other asset classes.

Most important though is the key to a potential sharp whipsaw in the second half of this week…

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© 2012 ROHR International, Inc. All International rights reserved.

There it was… his next star turn on the global financial Great White Way, and the critics hated it. Certainly not enough emotive sympathy and direct support for the fragile economies and markets. What in the world they wondered was the Saviour of 2009 and 2010 and even the Chubby Checker cover band leader (Let’s Twist Again) possibly thinking in NOT providing more immediate overt liquidity expansion?

The answer is actually fairly easy: Keeping his powder dry for the more acute crises that might come along. And while the global economic situation is obviously weakening (as we had suspected in our reviews of China and Europe), the Fed Chairman is likely wise to wait until there is more of a consensus on any further moves being truly necessary.

On the question of just what Bernanke and the Fed could do right now, there is one component of the answer that is clear from his recent Q&A at the US Congress…

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© 2012 ROHR International, Inc. All International rights reserved.

In all humility, our assessment of why the equities would strengthen and other asset classes would behave as they have into the FOMC meeting today has turned out pretty much as expected… At least so far. The Weekly Report & Event Calendar is still available through the link in the right hand column. The focused comments below it are now also available as well in the calendar section as the Summary Perspective on Key Influences. We hope you find that useful as well.

It contains the opening summary of why European and central bank influences were going to underpin the equities in the first part of the week. It also has the Concise Market View at the end, which points out the key levels for the equities that are probably also the overall driver for market psychologies in the other asset classes.

Not the least of which is…

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